March 24, 2022
You maybe new to real estate investing and seeing terms like Gross Square Footage, Net Rentable, NRSF, NSF or GSF on sales brochures, offering memorandums etc. and wondering exactly what those might mean.
Every building can be defined by gross square footage as well as net rentable square footage. Gross square footage (GSF) is the total space a building takes up. It includes all of the area inside the building including unusable space between walls.
Net square footage (NSF) includes only the areas of the building that are accessible by the user or tenant. Net Rentable Square Footage (NRSF) in the case of self storage, indicates the amount of space able to be rented out by tenants. This would not include other accessible areas such as hallways, leasing office, bathrooms, meeting rooms etc. NRSF is the space that will bring you money as an investor. In self storage, you figure this number by adding up all of the square footage for the various unit types.
Many times in non-climate or ambient type storage facilities, the GSF and NRSF will be very close if not the same number. The greatest difference between GSF and NRSF is going to be seen in multi-story climate controlled storage facilities where NRSF might be 75% of GSF.
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